Registered with the MinistryJustice of UkraineJuly 16, 2007under N 823/14090

(Regulation comes into force on 1 January 2008)

SITUATION(standard) accounting 32"Investment property"

General

1. This situation (standard) defines the methodological frameworkformation of accounting information on the investmentProperty and disclosure in financial statements.

2. Standards of these Regulations (standards) are appliedenterprises, organizations and other entities (hereinafter --company) regardless of ownership (except budgetinstitutions).

3. This situation (standard) does not apply to mattersresolve the situation (standard) accounting 14"Rent", approved by Order of the Ministry of Finance of Ukraine28.07.2000 N 181 (z0487-00) and registered with the MinistryJustice of Ukraine on 10.08.2000 under N 487/4708 (hereinafter - Regulations(standard) accounting 14 "Leases"), and otherregulations (standards) of accounting, namely:1) the classification of the lease on the operating and financial;2) recognition of income from the lease of investmentestate;3) assess the lessor of real estate that is available for rent ata finance lease;4) take into account sales and operations, selling assets to theircontinuation of the lease;5) the disclosure of financial and operating leases infinancial reporting;6) accounting for biological assets related toagricultural activities;7) taking into account the rights to exploration and miningand irreproducible resources.

4. Terms used in regulations (standards)accounting, have the following meanings:Investment property - their own or leased on termsfinance lease land, buildings, structures,located on land held for the purpose of obtaining rentalpayments and / or increase its own capital, and not for productionand delivery of goods, services, administrative purposes orSales in the course of normal activities.Operating real estate - own or leased on termsfinance lease land, buildings, structures,located on land held for use forproduction or supply of goods or services, or inadministrative purposes.The carrying value of an asset - an asset for which heincluded in the total balance.

5. For accounting purposes is not considered an investmentEstate:

5.1. Operating real estate and real estateprovides for future use as an operatingproperty.

5.2. Real estate for sale contained innormal course of business.

5.3. Being constructed or improved on the instructionsthird parties.

5.4. Properties in the process of building orimprovements to future use as investmentproperty.

5.5. Real estate, leasing of another entityeconomy under a financial lease.

6. If a certain fixed asset includes a portion thatwithheld in order to obtain the rent and / or to increaseequity, and the other part, which is operating real estateand these parts can be sold separately (or separately provided inrent under a contract of financial lease), then these partsappear as separate inventory items. If these parts do notbe sold separately, fixed asset recognizedinvestment property, to be used mainly fromto obtain the rent and / or to increase their owncapital.With signs that fixed asset may beassigned to the operating real estate, and investmentreal estate company is developing criteria for their delineation.

7. If the company controls the investment property,provided in the lease parent company or subsidiaryventure for the production or supply of goods or the provisionservices, or administrative order, the object keyin the preparation of consolidated financial statements of thegroup of companies is operating real estate.

Recognition and measurement of investment property

8. Investment property is recognized asset, if therelikelihood that the company will in the future from itsof economic benefits in the form of lease payments and / orincrease in equity, and its initial cost may bereliably determined.

9. Acquired (created) investment property is transferredon the balance sheet at cost. Accounting unitinvestment property is land, building (partbuilding) or a combination thereof, as well as assets that form areal estate investment and a coherent set of aggregategenerate cash flows.

10. Original cost of purchase of investment propertyconsists of the following costs:amounts paid to suppliers (sellers) and contractorsfor construction and installation works (excluding indirect taxes);registration fees, state fees and similar paymentscarried out in connection with acquisition (receiving) the rights toinvestment properties;amount of indirect taxes in connection with the acquisition (creation)investment property (if they are not reimbursedenterprise)legal services, commission fees associated withacquisition of investment property;other costs directly related to the acquisition andbringing objects of investment property to the state in whichThey are suitable for use with the planned purpose.

11. The initial value of investment property creatednow is its cost, determined on the date of commencementof investment property, based on the totalcost of its creation.

13. If the acquisition of investment property is carried out onconditions of payment delay, then its original value is recognizedprice under the contract. Reward supplier in the amount ofdifference between the contract price and the total amount of payments on itsrecognizes the benefit of financial outlay.

14. The original cost of investment property increasedthe amount of expenses related to its improvement (modernization,modification, completion, additional equipment, reconstruction, etc.)leads to an increase in future economic benefits originallyexpected from the use of investment property.

15. Expenditure undertaken to maintain the investmentProperty in working condition and receive a certain amount originallyfuture economic benefits from its use are included in thethe costs of the reporting period.

16. Enterprise on the balance sheet date reflects the financialReporting investment property at fair value, ifit can reliably determine, or at cost,reduced the amount of accumulated depreciation, taking into account losses fromreduce the usefulness and benefits of its recovery recognizedunder Regulation (standard) accounting28 "Reducing the usefulness of assets, approved by OrderMinistry of Finance of Ukraine from 24.12.2004 N 817 (z0035-05) andregistered in the Ministry of Justice of Ukraine for 13/01/2005N 35/10315. The selected approach is applied to the evaluation of all suchobjects of investment real estate.

17. Evaluation of investment property at fair valuebe applied before the date of retirement, transfer of investmentreal estate operating properties and one that containsfor sale, or if it becomes impossible to reliably determine itsfair value at the balance sheet date.

18. Investment property is recorded at the originalvalue, reduced the amount of accumulated depreciation, taking into accountlosses from reduced utility and benefits of its recovery,not subject to revaluation.

19. Evaluation of investment property at fair valuebased on prices of an active market in the same area insuch a state under such conditions, lease or othercontracts on the balance sheet date and does not take into account the future costsimprovement of real estate and related future benefits in connection withfuture costs for the improvement of facilities investmentestate.

20. In the absence of an active market definition of fairvalue of investment property is carried out by:

20.1. The most recent market price of the deal with those assets (withthe absence of significant changes in technology, market,economic or legal environment in which businesses operate.

20.3. Additional indicators of the level of priceson investment properties.

21. In the absence of information on market pricesinvestment property of its fair value is determined bythe present value of future net cash flows fromasset, calculated in accordance with the provisions of paragraphs 11-14(standard) accounting 28 "Reducing the usefulnessassets, approved by Decree of the Ministry of Finance of Ukraine24.12.2004 N 817 (z0035-05) and registered in the MinistryJustice of Ukraine on 13.01.2005 under N 35/10315.

22. The amount of increase or decrease in fair valueinvestment property on the balance sheet date is reflected in the compositionOther operating income or other expenses of operating activitiesrespectively.The fair value of investment property does not includeprepayment and accrued income from financial leases.

23. In determining the fair value of investmentreal estate companies, it includes all the basic facilitiesfunds that make investments in real estate holisticcomplex and collectively generate cash flows. Suchinvestment property in the account is reflected as a separateobject that generates cash.Permanently installed facilities and equipment (elevatorsconditioners, etc.), whose value is taken into account when determiningfair value of investment property are accounted foroff-balance sheet accounting at historical cost. All other assetsused in conjunction with the investment property (furniture,household equipment, office equipment, etc.) are estimated fororiginal (revalued) costs and are recordedunder the provisions of (standard) accounting 7"Fixed Assets", approved by order of the Ministry of FinanceUkraine from 27.04.2000 N 92 (z0288-00) and registered inMinistry of Justice of Ukraine on 18.05.2000 under N 288/4509.

Translated into real estate investment propertiesor removing it from the investment property

24. Translated into real estate investment properties orits output from the investment property is carried out onlyin the case of changes in the nature of real estate, which is certified by:1) start to use it as an operating property;2) start to prepare it for sale with the transfer objectProperty investment in the stocks;3) preparation of the operating properties for use asinvestment property;4) provision of an operating lease to another party;5) the transfer of its stock or operating real estate toinvestment property;6) completion of the transfer of property fromof uncompleted construction in the investment real estate.

25. Translation investment property in the stockscarried out if there are changes in how to use thisasset, as evidenced by the beginning of preparation for sale. Ifimplementation of investment property is carried out without priortraining, investment property transfer in thestocks not subject. If the enterprise carries on improving(completing construction, reconstruction, etc.) of an existing investment propertyfor its continued future use as investmentproperty, such property remains a partinvestment property.Translation investment property in the stocksimplemented in the manner provided for fixed assets.

26. When transferring an investment propertymeasured at fair value, operating in real estateor in the stock cost of such fixed assets orstock is determined by the fair value of investmentestate at the date of such transfer.

27. When transferring operating real estate investment,that will be measured at fair value, the difference betweenbalance (residual) value of operating property andfair value of investment property is shownaccordance with paragraphs 19 and 20 of Regulation (standard)Accounting 7 "Fixed Assets", approved by OrderMinistry of Finance of Ukraine from 27.04.2000 N 92 (z0288-00) andregistered in the Ministry of Justice of Ukraine for 18/05/2000N 288/4509.

28. When transferring real estate from the stock in the investmentestate, which will be measured at fair value, the differencebetween the fair value of the property as of the date of transferand the balance (residual) value is recognized other incomeor other expenses of the period in which such transfer occurred.29. With the completion of the investment property, whichrecorded at fair value, the difference betweenfair value of the property at that date and the cost ofConstruction is recognized other operating income or otherOperating expenses of the period in which therecompletion.

Disposals of investment property

30. The recognition of investment property ceases whendisposal facility as a result of the sale, transfer in the lease,elimination, making the charter capital, with the discrepancycriteria for the recognition of an asset on other grounds, the translation fromInvestment in real estate or real estate operatingdiscontinuing the use of such investment property withExcept expectation of any economic benefits fromits disposal.

31. Financial result on disposal of investmentestate is determined by subtracting from income from disposal ofbook value of indirect taxes and costs associated withdisposal of investment property.

32. Income and expenses from the sale of investment real estateits subsequent lease determined in accordance with the Regulations(standard) accounting 14 "rent" (z0487-00).

Disclosure of information on investment propertyin the notes to financial statements

33. The cost of investment property in the balancereflected as a separate item.

34. The notes to the financial statements regardless of the methodevaluate investment property the following information oneach group of investment property:

34.2. Reflected in the income statement reportingPeriod:34.2.1. The amount of rental income from investment property.34.2.2. Total direct costs (with a separate allocation for repairs andservices), recognized in connection with the content of investmentReal estate that generates rental income during the reportingperiod.34.2.3. Total direct costs (with a separate allocation for repairs andservices), recognized in connection with the content of investmentestate, which does not generate rental income during the reportingperiod.

34.3. Restrictions on the possession, use and disposalinvestment property.

34.4. The amount of the concluded agreements for the future:34.4.1. On the acquisition, construction and preparation of investmentestate.34.4.2. The repairs, maintenance and improvement of investmentestate.

35. In evaluating investment property at fairvalue the following information:

35.1. The methods and significant assumptions, which are applied indetermining the fair value of investment property.

35.2. Implementation of the evaluation of investment real estate agentsassessment activities that have experience in assessing such property insame locality, or the failure of such entities indetermining the fair value of investment property.

35.3. The carrying value of investment property at the beginningand the end of the year.

35.4. Total other operating income and other expensesoperations resulting from changes in fairvalue of investment property.

35.5. The amount of revenues and expenses resultingtransfer to investment property stocks and at the conclusionconstruction of investment real estate.

35.6. The difference between the carrying amounts of assets that occurreddue to the transfer of the operating property in the investmentproperty, which is reflected in the composition of revenues, expenditures andadditional capital.

35.7. Description of investment property (poobektno in quantitativeand value), which ceases to be assessed at fairvalue and would be valued at historical cost, reduced toamount of accumulated depreciation, taking into account losses from reducedusefulness and benefits of its recovery, to bringing:35.7.1. The reasons for the impossibility of reliable determination of itsfair value.35.7.2. Book value of such investment property.

36. In evaluating investment property at the originalvalue, reduced the amount of accumulated depreciation, taking into accountlosses from reduced utility and benefits of its recovery,the following information about each group of investmentProperty:

36.1. Depreciation methods used now, andrange of useful lives.

36.2. The carrying value and the amount of wear and tear taking into account the lossesby reducing the usefulness and benefits of its recovery at the beginning andend of the year.

36.3. The amount of accumulated depreciation during the year.

36.4. The amount of losses from reducing the usefulness and value of benefits fromrecovery utility, as reflected in the income statementresults and report on equity for the year.